Difference b/w Domestic and International trade

Difference b/w Domestic and International trade
1. Mobility in Factor Of Production
•Domestic Trade: Free to move around factors of production like land, labor, capital and labor capital and entrepreneurship from one state to another within the same country
•International Trade: Quite restricted
2. Movement Of Goods
•Domestic trade: easier to move goods without much restrictions. Maybe need to pay sales tax,etc
•International Trade: Restricted due to complicated custom procedures and trade barriers like tariff, quotas or embargo
3. Usage of different currencies
•Domestic trade: same type of currency used
•International trade: different countries used different currencies
4. Broader markets
•Domestic trade: limited market due to limits in population, etc
•International trade: Broader markets
5. Language And Cultural Barriers
•Domestic trade: speak same language and practice same culture
•International trade: Communication challenges due to language and cultural barriers
Posted by MAHESH CHANDRA at 7:30 PM